The US House of Representatives has approved a bipartisan package of tax administration, disaster relief, and workforce-related bills aimed at modernising IRS operations, expanding taxpayer protections, strengthening the IRS whistleblower program, and extending targeted tax relief for disaster victims and other affected groups.
The US House of Representatives has approved a bipartisan package of tax administration, disaster relief, and workforce-related bills aimed at modernising IRS operations, expanding taxpayer protections, strengthening the IRS whistleblower program, and extending targeted tax relief for disaster victims and other affected groups.
The US House of Representatives, during the week of 27 April 2026, approved a package of bipartisan tax administration, taxpayer relief, and workforce-related measures previously advanced by the House Ways and Means Committee.
Most of the bills were passed by voice vote, while measures relating to the IRS whistleblower program and clergy Social Security coverage received recorded votes.
IRS modernisation and taxpayer protections
Several of the approved bills focus on improving IRS operations, taxpayer services, and information reporting procedures.
The Taxpayer Notification and Privacy Act (H.R. 6495), introduced on 5 December 2025 by Representatives Greg Steube and Jimmy Panetta, would require the IRS to inform taxpayers about the exact information requested from third parties and allow taxpayers 45 days to provide the information themselves before the IRS contacts those parties. The Congressional Budget Office estimated the bill would have only an insignificant revenue impact during 2026–2035.
Lawmakers also approved the BARCODE Efficiency Act (H.R. 6956), introduced on 7 January 2026 by Representatives Rudy Yakym and Bradley Schneider. The proposal would require electronically prepared paper tax returns to contain scannable barcodes and direct the IRS to use optical character recognition technology for paper filings and correspondence. Exceptions would apply where manual processing is deemed more reliable or efficient. Supporters said the measure would help modernise processing for the roughly 10 million paper returns still received annually.
In addition, the Taxpayer Experience Improvement Act (H.R. 7971), introduced on 18 March 2026 by Representatives David Schweikert and Donald Beyer, seeks to modernise IRS technology and taxpayer services. The bill would expand online taxpayer account access, improve refund and return tracking, introduce wait-time dashboards for IRS phone lines, and enhance callback services. The Joint Committee on Taxation (JCT) estimated the proposal would not affect federal budget receipts.
Disaster relief and targeted tax measures
The House also approved several targeted relief bills addressing disaster recovery and specific taxpayer circumstances.
The Doug LaMalfa Federal Disaster Tax Relief Act (H.R. 5366), introduced on 15 September 2025, would extend tax relief for individuals affected by federally declared disasters. The legislation would continue deductions for personal casualty losses for taxable years beginning after 31 December 2024 and provide exclusions from gross income for certain wildfire compensation payments received in taxable years beginning after 31 December 2025. Eligible disaster periods would generally apply to incidents occurring between 28 December 2019 and 1 January 2027. The JCT estimated the casualty loss provisions would reduce federal receipts by USD 77 million over fiscal years 2026–2036, while wildfire-related exclusions would reduce receipts by USD 331 million over the same period.
Another measure, the Survivor Justice Tax Prevention Act (H.R. 2347), would exempt non-punitive damages received by sexual assault survivors from gross income. Lawmakers said the bill addresses concerns that current tax rules often require visible physical evidence of harm before settlements qualify for tax-free treatment.
The House further advanced the New Opportunities for Business Ownership and Self-Sufficiency Act (H.R. 6431), which would expand eligibility for state Self-Employment Assistance programs that help unemployed individuals start small businesses instead of relying solely on unemployment benefits.
Whistleblower and workforce measures
The IRS Whistleblower Program Improvement Act (H.R. 7959), introduced on 17 March 2026 by Representatives Mike Kelly and Mike Thompson, passed by a 346-10 vote. The bill would strengthen whistleblower protections by permitting anonymous Tax Court proceedings, allowing deductions for attorney fees, requiring interest payments on certain awards, and providing broader judicial review standards. The JCT estimated the measure would reduce federal receipts by USD 44 million during fiscal years 2026–2036.
Additional workforce-related measures also advanced. The SEED Act (H.R. 5334) would extend the educator expense deduction to early childhood educators, while the Clergy Act (H.R. 227), approved by a 350-5 vote, would allow clergy members a two-year period to revoke exemptions from Social Security coverage.
